Transcript Urban Land Market and Poverty Alleviation Land Management

UPA Package 3, Module 2
INFORMAL LAND MARKET AND
URBAN POVERTY
2.3.2 Informal Land Market and Urban Poverty
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Informal Settlement and Urban
Poverty
Poverty is a multidimensional phenomenon:
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•
•
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Lack of access to employment;
Lack of tenure security ;
Lack of social protection;
Lack of access to health, education and personal
security.
2.3.2 Informal Land Market and Urban Poverty
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Informal Settlement and Urban
Poverty
Poverty can be defined as lack of security
and choice:
•
•
•
•
•
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Lack of adequate housing and services;
Live and work in informal and illegal settlements
Do not have secure tenure in these settlements
Lack of adequate transport infrastructure
Great commuting distance
Lack of access to credit
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Informal Settlement and Urban
Poverty
For the urban poor, both two elements are missing
in the urban land and housing market
Reading:
What Is Urban Poverty?
--World Bank, 2001
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World Population Growth Will Be
Mainly in Urban
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Almost All Growth Will Take Place
in Cities of Developing Countries
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Developing Country Rapid Urbanization
Leads to an Increase in Informal
Settlements
• Urban growth in developing countries comes primarily from
individuals migrating from the rural areas (Nairobi: 90% of
recent arrivals to the slum areas came from rural Kenya).
• In the cities of developing countries there is restricted
access to formal serviced land by the urban poor (limited
formal land market activities, and limited access to credit)
• The urban irregular informal land market meets the
demand of the urban poor (and is apparently both more
profitable and easier to develop) .
• The result has been a rapid increase in the informal or
slum areas. The formal serviced land market is not
responding to the demand.
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Informal Settlement
• Dense settlements comprising communities housed in
self-Constructed shelters under conditions of informal or
traditional land tenure.
• Common features of developing countries and are
typically the product of an urgent need for shelter by the
urban poor.
• A significant problem especially developing countries
housing the world's disadvantaged.
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Informal Settlement
• Informal settlements occur when the current land
administration and planning fails to address the needs
of the whole community. These areas are
characterized by rapid, unstructutured and unplanning
development.
• On a global scale informal settlements are a significant
problem especially in third world countries housing the
world's disadvantaged. Slums, squatter settlements
and illegal settlements are unique characteristics of
informal settlements.
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Informal Settlement
Example:
Participation in Informal Settlement Nairobi ,Kenya
--Dorothy Abonyoof 1999
Coping With Informality And Illegality In Human
Settlements In Developing Cities
--Leuven and Brussels, 2001
The Improvement of Informal Areas in El-Monira, Egypt
--UN HABITAT 1996
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Informal Settlement
Hout Bay Informal Settlement Images– South Africa
1993
1994
Hout Bay derives its name from the Dutch for Bay of Wood,
for which it was apparently known in the early settlement
days of the Western Cape as a good source of wood for ship
building and repairs.
The need for labour in the harbour attracted migranting
workers who were precluded from ownership or secure
leases by group areas legislation. Squatting occurred
sporadically by pockets of people for more than fifty years. by
the late 1990 more than 2000 people lived in five main
informal settlements, the largest being Princess Bush and
Sea Products near Hout Bay harbour.
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Informal Settlement
Hout Bay Informal Settlement Images–south Africa
1996
1997
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Informal Settlement - Slum
Slums are legal but overcrowded, under-serviced
settlements,they are legal but substandard settlements.
Slum dwellers could be either renters of the shelter, or the
land or they could be owners of the land and dwelling.
Slums are normally found in the centers of cities, although
it is not uncommon to find slums, where land is rented, in
the urban periphery.
Reading
Urban Slum Reports: The case of Nairobi, Kenya -- Winnie Mitullah 2003
Slums of The World: The Face Of Urban Poverty In The New Millennium?
-- UN HABITAT 2003
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Informal Settlement - Slum
The term slum includes the traditional meaning, that is,
housing areas that were once respectable or even
desirable, but which have since deteriorated, as the
original dwellers have moved to new and better areas of
cities. The condition of the old houses has then declined,
and the units have been progressively subdivided and
rented out to lower-income groups.A typical example is the
innercity slums of many historical towns and cities in both
the industrial and the developing countries.
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Informal Settlement - Slum
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Informal Settlement - Slum
Hualoujie, Wuhan,
China
A former residential houses.
Once, more then fifty years ago,
as the desired houses where
located in the busiest area of
Wuhan city. It was demolished
in May 2003
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Informal Settlement - Slum
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Informal Settlement - Slum
The term slum has, however, come to include also the
vast informal settlements that are quickly becoming
the most visual expression of urban poverty. The
quality of dwellings in such settlements varies from the
simplest shack to permanent structures, while access
to water, electricity, sanitation and other basic services
and infrastructure tends to be limited. Such
settlements are referred to by a wide range of names
and include a variety of tenurial arrangements.
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Informal Settlement - Slum
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Informal Settlement - Slum
Slums of The World:
The Face Of Urban Poverty In The New Millennium?
Reading:
The new paper presents the results of a first global enumeration
of slums at the country level by UN habitat in 2003.This
document is the culmination of attempts to come to grips with
changes in the way we measure slums, starting by providing an
agreed universal, definition of this type of settlements and a clear
methodological approach. The preliminary estimations presented
in this document represent a baseline year level that permits the
preparation of quantitative estimates for future trends. By
providing the methodology and the quantitative knowledge base,
the document strives to enhance the use of information on urban
poverty, as a powerful policy-making tool to help induce the
desired structural changes for poverty alleviation.
-- UN HABITAT 2003
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Informal Settlement
- Squatter Settlements
• Squatter settlements are unplanned, often unserviced
illegal settlements.
• Squatter settlements are often found on marginal or
environmentally hazardous lands, such as beside
railway tracks, along rivers and canals etc. They are
also found on government land or land whose
ownership is unclear.
• Squatter settlements are spontaneous or organic
settlements with little or no planning.
• Squatter settlements are substandard housing
conditions and Minimum amounts of capital investment
because their land tenure is illegal.
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Informal Settlement
- Squatter Settlements
Usually, a squatter settlement is highly organized despite
being illegal. The occupants have clearly defined behavioral
rules, spatial boundaries and methods of solving tenurial
disagreements. Illegal housing is sold, land is subdivided
and leased, and other transactions are possible as if the
land or housing was legal. The settlement is also typically
recognized by the public or private landowner, and, if the
landowner is private, rents are often transferred. Squatter
settlements have gradually become an integral part of the
urban fabric.
Reading:
Defining Squatter Settlements
2.3.2 Informal Land Market and Urban Poverty
-- Hari Srinivas
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Informal Settlement
- Squatter Settlements
A squatter settlement in city periphery, China
• A settlement, lacking services, which consists of a
collection of small, crude shacks made of discarded
materials and serving as habitation for poor people
on the outskirts of towns.
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Informal Settlement
- Squatter Settlements
A squatter settlement in city periphery, China
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A Squatter Settlement in
E. Santiago
In their early stages squatter settlements are
characterized by haphazard settlements patterns,
poor quality of housing and an absence of public
infrastructure and services such as piped water
supply, sewerage, roads and electricity. Over time,
people find ways of accessing basic services. In
some squatter settlements water is bought through
vendors and charges could be as high as ten times
the municipal water rates. In other cases squatters
have been known to illegally tap into the main
water pipe lines to access water.
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
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A Squatter Settlement in
E. Santiago
Although generally regarded as
an important aspect of
sanitation, the removal or
treatment of solid waste by a
household has not been widely
collected in surveys. In urban
areas this is especially critical
and for many observers the
condition of solid waste disposal
is the first impression of an
unacceptable living condition.
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Informal Settlement
- Illegal Subdivisions
• Illegal subdivisions are planned and organized. These
usually occur in cities where the government owns large
tracts of vacant land, with low opportunity cost, in the
periphery of the city.
• Illegal subdivisions are started by unscrupulous land
developers who are often in league with corrupt elected
and appointed government officials, including the police.
With the protection of these corrupt officials these
developers occupy government land, level it and
subdivide it, according to government planning
regulations, planning space for commercial, residential
zones, schools, hospitals, religious institutions, recreation
areas, primary, secondary and tertiary roads etc.
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Informal Settlement
- Illegal Subdivisions
• These plots are sold, at almost nominal prices, without
services to low-income households in desperate need for
shelter. The only thing they provide is water through tanker
trucks.
• Such subdivisions often pay little attention to health and
fire safety considerations. As the motive behind their
development is maximum profit they often have no
provision of public amenities like parks or open spaces.
narrow roads contravening planning rules and a lack of
coordination of transport access to lands around them can
cause traffic congestion.
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Informal Land Market
• Substandard and insecure housing conditions are recognised
as a crucial aspect of urban poverty. In most large cities in the
developing world, the formal market serves only a minority of
the population. It is estimated that between 30 and 70% live
in ‘irregular’ settlements and that up to 85% of the new
housing stock is produced in an extra-legal manner.
• The conventional sequence of Planning-Servicing-BuildingOccupation is a key factor in both market and state failures.
Each of these steps leads to a steep price increase and
speculation, and in effect raw land is turned into a scarce and
expensive commodity. The effects to the urban poor is that
they have be locked out of formal urban land markets.
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Informal Land Market
When the poor are locked out of the formal land and housing
markets they revert to the informal land and housing
markets to meet their needs.
Why do they work?
Reading
Learning from informal markets: Innovative approaches to
land and housing provision
--Erhard Berner2000
Informal land delivery processes in six african cities
--Carole Rakodi and Clement Leduka 2003
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Informal Land Market
Invasions:
• Homeless urban dwellers who group together to take
away a piece of land from speculators or listless
governments is certainly appealing. low quality public
land, is a common condition for invasions on a massive
scale. In these cases the land is uncontested and can
be occupied by squatters even without being organized
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Informal Land Market
Squatting in marginal locations:
Reading
Illegal settlements fill the gaps left by
urban development. ‘there is no free
squatting’ distinction between noncommercial and commercial articulation
of illegal land supply becomes, thus,
questionable. Where traditional systems
of land allocation exist they are often
losing significance or becoming
commercialized themselves.
Learning from
informal markets:
Innovative
approaches to
land and housing
provision
2.3.2 Informal Land Market and Urban Poverty
--Erhard
Berner2000
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Informal Land Market
Extra-legal subdivisions:
This implies that houses are built without permits and their
quality as well as the provision of infrastructure may be
below regular standards, which is precisely what makes
them affordable for low-income groups. ‘It is their ability to
cut corners–and costs–which has helped the commercial
subdividers to expand their operations and to provide plots
which are more appropriate, affordable and easily available
than any other housing option’.
The ‘serviced’ land can then be subdivided and sold–what is
actually sold is the ‘right to squat’ on a certain plot, and no
one mistakes this for a legal title. It is not uncommon that
part of the land is set aside for speculation purposes.
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Informal Land Market
Renting and subletting:
Recent figures compiled by UNCHS indeed suggest that in
most cities, the majority of the population is renting
accommodation; It is reasonable to assume that a large
proportion of these tenants is poor, and renting because
owner occupation is not accessible to them. there is a wide
variation of rental sub-markets in terms of accessibility and
quality of infrastructure of the location, form and security of
tenure, and the quality of housing and facilities. A close
relation between land markets and rental accommodation:‘In
many cities, the bulk of affordable rental housing is now
provided in the homes of low-income homeowners–whether
they have legal, semi-legal or no legal tenure of their land
and house’.
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Bring the Poor Into Formal Land
Market
• The key to sustainable poverty alleviation is not to make
the poor dependent on governments or nongovernmental organizations but to empower them to
increase their security and choices. In other words to
enable the poor to operate in formal markets like other
citizens.
• Experience has shown that bringing the poor into the
formal land and housing markets needs a two pronged
strategy: increasing the choices available on the supply
side and increasing affordability on the demand side.
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Bring the Poor Into Formal Land
Market
• Housing opportunities for the urban poor has become
an increasingly urgent task for municipalities to tackle.
Most of the initiatives to provide low-income groups
access to land for housing introduced later are
implemented by governments. These include sites-andservices schemes and settlement upgrading. Apart from
sites-and-services schemes and settlement upgrading,
incremental development is an approach which lets the
target group decide when to develop their land. A figure
may display the basic difference between these three
concepts and conventional housing programmes.
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Bring the Poor Into Formal Land
Market
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Increasing Supply of Land for the
Poor
Early attempts:
• Governments provides low-income housing focused on
the provision of fully serviced public housing units.
• Urban migrants and squatter settlements were treated
with open hostility.and were often flattened with the help
of bulldozers.
During the 1960s and 1970s:
• Government housing programmes were completely
incapable of keeping pace with the enormous demand.
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Increasing Supply of Land for the
Poor
After then,Many experts advocated:
• Provide security of tenure to low-income groups
• Provide some basic infrastructure
• Residents would with time gradually improve their
housing.
• The role of the government in housing
- to be an enabler rather than provider.
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Site-and-Services Schemes
• Provide the target group with a plot and basic
infrastructure, such as water, roads and sanitation
facilities. The beneficiaries either lease or buy the
allocated land. they are provided access to a loan with
reasonable terms as well as an additional loan for the
construction of a house. It is better option than
government built housing, often failed to meet the housing
needs of the urban poor.
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Site-and-Services Schemes
Some of the problems which have
been discussed are:
•
•
•
•
•
•
•
Location.
Failure to include one or more components.
Selection of eligible households.
Standards.
Administrative delay and shortage of skilled
staff.
Removal of community leaders
During the 1970s and 1980s, sites-and-services schemes were implemented in
nearly 100 countries mostly on the behest of international agencies like the
United Nations and the World Bank.
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Site-and-Services Schemes
Example Case:
Sites and Services for low income population on the north
zone, Buenos Aires (Award Winning in Best Practices of UN
HABITAT 1996) Argentina.
This is a project on sites and services for family groups with a
low income living in the north area of Buenos Aires, Argentina.
It was carried out by APAC, a civil association with no profit
purposes working in habitat themes with marginal populations,
themes concerning both land and housing.
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Site-and-Services Schemes
Example Case:
The project consists in 173 plots provided with a basic
infrastructure such this:
- water supply system
- electricity supply system
- road constructions
- open rainwater drainage system
- light pillars
- streets lighting
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Settlement Upgrading
Settlement upgrading is based on investments already
made in the existing housing stock and is therefore less
costly to implement. Settlement upgrading provides existing
settlement dwellers land tenure as well as some or all of
the components indicated in table the fundamental feature
being the provision of basic infrastructure.
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Settlement Upgrading
Physical
Social
Economic
Road infrastructure
and footpaths
Health facilities
Housing and
infrastructure loans
Sanitation
Education facilities
Small business loans
Garbage collection Community facilities
(parks, playgrounds)
Drainage
Other community
activities
Water
2.3.2
Informal
Land Market and Urban Poverty
Street
lighting
Employment
generation
Training
Trade association
Establishment
of
51
cooperatives
Settlement Upgrading
An Overview of
Upgrading
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Settlement Upgrading
Characteristics of
Stressed
Communities
• Lack of basic services
• Insecure or unclear
tenure of land
• Low household
incomes
• Dependence upon
informal work
opportunities
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Upgrading As A Response
Objectives:
• Improve overall
conditions
• Safeguard from
displacement
• Encourage selfrehabilitation
• Stimulate small
business expansion
• Ensure affordability
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Upgrading As A Response
Factors to Consider:
• Scale of the problem
• Severity of conditions
• Tenure
• Community participation
• Institutional framework
• Financial structure
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Upgrading As A Response
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Upgrading As A Response
Types of Upgrading
Programs:
• Community
Infrastructure
• Lot titling
• Comprehensive
Upgrading
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Upgrading As A Response
Community Infrastructure:
• Simple and rapid
• Poor environmental conditions poor,
secure tenure
• Cost less per capita
• Benefits per household low
• Financed by municipal taxes and
user charges
• Comprises of physical improvements
such as footpaths, sanitation, water
supply, drainage
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Upgrading As A Response
Lot Titling:
• Minimal infrastructure
• Fairly good environmental
conditions, insecure tenure
• Establishes secure of tenure
• On-plot services such as
wells and sanitation provided
by individual household
• Low public investment
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Upgrading As A Response
Comprehensive Upgrading:
• Combines community
infrastructure and lot titling
• Poor environmental conditions,
insecure tenure
• Greater administrative
requirements and community
involvement
• Costly but benefits per
household great
• Include individual service
connections
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Upgrading As A Response
National Upgrading
Programs require
guidelines for
assessing the positive
and negative impacts
of projects on the
natural resource
base.
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Upgrading As A Response
Properly planned and
implemented upgrading at
local and national levels
can improve depressed
communities, stimulate
residents to improve their
own homes, and make the
community an integral part
of the urban fabric.
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
The Kampung Improvement Programme (KIP) in Indonesia
probably rates as the foremost settlement upgrading
achievement in the world. The objectives of the programme
were to provide access roads, footpaths, drainage, sewage
solutions and drinking water and social facilities such as
schools and health centres for urban low- and medium income
groups in Indonesia's popular kampung settlements. has
improved more than 500 kampungs and provided basic
services to about 3.8 million people (United Nations, 1989).
Indonesia's five-year-plan for 1989-1994 was to be
implemented in 500 cities and included projects for urban
renewal encompassing settlement upgrading programmes
(Silas, 1992).
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
Kampung Improvement
Program, Indonesia
1981
Aerial view, the Kampung
Improvement Programme has created
healthier urban environments by
providing municipal services
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
Aerial view
Kampung Improvement Program, Indonesia 1981
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
Detail, drainage channel
A pedestrian bridge
Kampung Improvement Program, Indonesia 1981
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
Detail, drainage channel
Kampung Improvement Program,
Indonesia 1981
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
House under construction
Kampung Improvement Program,
Indonesia 1981
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
A resident upgrades his
home
Kampung Improvement Program,
Indonesia 1981
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Kampung Improvement Program,
Surabaya – Indonesia (Case 1)
A newly paved street and
drainage channel
Kampung Improvement Program,
Indonesia 1981
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Settlement Upgrading Project
Senegal (Case 2)
• Senegal, like many developing countries is under
pressure from the the urban squatter settlement
problem. In order to deal with such uncontrolled
urbanization which represents almost 25% of Senegal's
urban areas and meet the strong demand for decent
housing, the government has engaged in three series
of actions among which is the upgrading housing
programme.
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Settlement Upgrading Project
Senegal (Case 2)
• This programme which started in 1987 Dalifort (Pilot
Project), was designed and implemented with technical
and financial support from the German Technical
Cooperation in 1987. It relies on the involvement
(financial and physical) of squatters' population in the
improvement process of their living conditions.
The programme's expected result is to achieve
adequate shelter through an enabling approach to
shelter improvement which is environmentally sound, i.e
actively promote the legalization and upgrading of
settlements.
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Settlement Upgrading Project
Senegal (Case 2)
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Tianjin Comprehensive Housing
Improvement Scheme (Case 3)
At the end of 1993, the Tianjin Municipality Committee and
Municipal Government put forward a scheme to complete the
rehabilitation of unsafe and dilapidated buildings in the inner
city in 5 to 7 years. This comprehensive rehabilitation scheme
has transformed both the old and the newly built areas into
functional and rational land use pattern. A large number of
educational, cultural and commercial facilities have been
created and the green space has increased. At the same time,
major improvements have been made to urban infrastructure,
including the construction of 35 roads and 20 bridges. While
the Municipal Government ensured overall co-ordination and
planning, the implementation of the project was developed to
the District level, bringing the projects much closer to the
people.
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Tianjin Comprehensive Housing
Improvement Scheme (Case 3)
The Figures Showing the
Increasing of Housing, Road
and Heating of Tianjing
Between 1997~2001
Houses equipped with central
heating increasing (Sq.m)
Per capita residential floor space
increasing between 1997-2001 (Sq.m)
Roads construction (Km, Sq.m)
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Settlement Upgrading
Successful squatter settlement
regularization/upgrading projects have the
following characteristics:
1. Upgrading projects are relatively cost-effective in a
situation of high demand for shelter and services.
2. Upgrading projects are most successful if they are
simple and down to earth. Basic programmes of service
provision were relatively successful, whereas additional
components such as income generation and home
improvement credit have been less effective. Simple
programmes have extended coverage and ensure
faster implementation.
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Settlement Upgrading
3. Components to improve land tenure had to be carefully
implemented to enhance the perceived land tenure
security, as well as, to recover costs.
4. Community participation was essential for the success
of upgrading programmes.
5. Participatory approaches in all stages: concept
development, planning of layout, decision making on
level of services and implementation were extremely
important to the success of projects.
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Land-Sharing
The concept of land sharing is that the landowner and the
land occupants (squatters or tenants) reach an agreement
whereby the land owner develops the economically most
attractive part of the plot and the dwellers build houses on
the other part with full or limited land ownership. Both the
landowner and the squatters benefit from land sharing.
Squatters get to stay on the land legally while the land
owner can sell or develop a portion of the land and avoid
long legal battles.
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Land-Sharing
Several advantages:
•
•
•
Overcome difficult to find land for public housing
schemes in locations near income-generating
activities
Unnecessary to clear land for development
projects.
Both parties gain: the landowner can obtain the
most desired land and the occupants can continue
living in the area, with secured tenure.
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Land-Sharing
The five basic requisites of land sharing are:
• Community organization:
- Negotiations for land sharing require that slum dwellers
organize to counter the thread of eviction.
• A land sharing agreement:
- This requires a binding agreement to partition the land.
Usually the land parcel with the best development
potential is allocated to the landlord.
• Densification:
- Rehousing the community in a smaller area requires
increased residential densities.
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Land-Sharing
•
•
Reconstruction:
- The increase in density and the need to clear part of
the site usually necessitates the reconstruction of
houses.
Capital investment:
- Reconstruction requires capital from the domestic
savings of the residents or loans from outside sources.
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81
The Sengki land-sharing project
(Case)
The Sengki slum of about 140 households was located in
one of the oldest parts of Bangkok and the land belonged
to the King of Thailand. The King's Property Bureau was
responsible for the management of the plot sized 25,080
square metres. Most of the slum dwellers returned after
slum demolished in 1978 by a fire and rebuilt less
permanent dwellings owing to the lower tenure security.
Some new dwellers also moved in at the time. The Sengki
slum had several characteristics which made it suitable for
land-sharing:
2.3.2 Informal Land Market and Urban Poverty
82
The Sengki land-sharing project
(Case)
• There was no serious development pressure on the land;
• The community had been living on the land for a
considerable period of time;
• The community was well established and residents
relatively close to each other;
• Most households in the area did not belong to the lowincome group;
• Most of the existing housing stock was temporary;
• The leaders of the Sengki slum were keen on the landsharing arrangement and could refer to experiences at
Wat Ladbuakaw.
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83
The Sengki land-sharing project
(Case)
Land sharing usually results in major improvements in
housing and a significant increase in asset formation. The
conditions for its success are assessed by comparing land
sharing slums with other slums with potential for land
sharing. Land sharing is not successful where communities
are weak, and once implemented may result in the resale
of some of the houses, which then command a higher
market value.
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84
The Sengki land-sharing project
(Case)
Land Sharing in Bangkok
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85
The Sengki land-sharing project
(Case)
Land
Sharing in
Bangkok
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86
The Sengki land-sharing project
(Case)
Land
Sharing in
Bangkok
2.3.2 Informal Land Market and Urban Poverty
87
The Sengki land-sharing project
(Case)
Land
Sharing in
Bangkok
2.3.2 Informal Land Market and Urban Poverty
88
Land Sharing Is Increasingly
Viable in the Following Situations
• The lower the development pressure.
• The better the cooperation of the landlord.
• The more legitimate is the occupation of the land by the
slum dwellers.
• The earlier the stage in the eviction process.
• The stronger the community leadership.
• The stronger the support from outside agencies.
• The lower the existing residential density.
• The smaller the existing size of houses.
• The lower the value of existing houses.
• The higher the ability to pay for housing.
• The better the access to sources of housing finance
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89
Land-Sharing
Some of the problems which have been encountered
with land-sharing projects include:
1. Availability of land. Often the land available is too small
and/or the population density too high within slum
communities. Furthermore, this shortage of land may force
the building of walk-up apartments which are generally
unpopular among slum dwellers.
2.3.2 Informal Land Market and Urban Poverty
90
Land-Sharing
2. Community cohesion. A land-sharing project requires
considerable cooperation efforts among slum dwellers who
often have a different background. This is particularly a
problem during the allocation of plots.
3. Complex and time-consuming. The necessity of community
participation and agreement throughout the complex
process is very time-consuming. The delay in
implementation has typically led to increased costs.
Furthermore, there is a problem with enforcement as there
are no clear rules and each individual household has so far
had the powers to block all major decisions.
2.3.2 Informal Land Market and Urban Poverty
91
Incremental Development
Incremental development can be described as a sitesand-services scheme without the services. The approach
includes mechanisms whereby groups of households are
encouraged to organize themselves, accumulate funds
and to provide infrastructure gradually. Construction
begins when the group has collected a certain
percentage of the required funds.
Through the incremental development scheme the
government seeks to establish a planned and legal
squatter settlement. Infrastructure and services are
provided incrementally when the residents are able to
pay for these.
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92
Khuda-ki-Basti Incremental
Development Scheme (Case)
Khuda-ki-Basti is a grid-like, planned layout within the 5500acre Gulshan-e-Shabbaz housing development located in
Hyderabad. It is the site of a development scheme devised by
the Hyderabad Development Authority (HDA) to help the
poorest families house themselves. In this sector homeless
Pakistanis are given the chance to settle on land, and to
obtain permanent. Given security of tenure, the families build
their houses and provide infrastructure incrementally, as
resources become available. The incremental development
scheme is entirely self-financing - -there is no subsidy, formal
or informal.
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93
Khuda-ki-Basti Incremental
Development Scheme (Case)
The entire cost of the developed plots is borne by the
beneficiaries, in installments spread over a period of 8
years. The family designs and constructs its house in any
material or style it can afford. Residents apply for individual
house connections to all utility services after they have paid
the charges; monthly installments eventually repay the
actual cost. Khuda-ki-Basti is also provided with education
and health facilities as well as affordable transport service.
The jury commends this successful effort to create
affordable housing for the urban poor, seeing it as a model
that can be widely applied everywhere.
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94
Khuda-ki-Basti Incremental
Development Scheme (Case)
Demonstration
of the
Procedure for
Securing a
Plot
Khuda-ki-Basti
Incremental
Development
Scheme,
Hyderabad,
Pakistan 1990
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95
Khuda-ki-Basti Incremental
Development Scheme (Case)
Site Plan
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
2.3.2 Informal Land Market and Urban Poverty
96
Khuda-ki-Basti Incremental
Development Scheme (Case)
Aerial View of Site
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
2.3.2 Informal Land Market and Urban Poverty
97
Khuda-ki-Basti Incremental
Development Scheme (Case)
Exterior View of
Development
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
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98
Khuda-ki-Basti Incremental
Development Scheme (Case)
Typical Shelter
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
2.3.2 Informal Land Market and Urban Poverty
99
Khuda-ki-Basti Incremental
Development Scheme (Case)
Exterior, Courtyard of
a House
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
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100
Khuda-ki-Basti Incremental
Development Scheme (Case)
Typical Shelter
Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
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101
Khuda-ki-Basti Incremental
Development Scheme (Case)
Gathering of Community
Members and Local
Khuda-ki-Basti Incremental Development
Authorities
Scheme, Hyderabad, Pakistan 1990
2.3.2 Informal Land Market and Urban Poverty
102
Increasing Effective Demand For
Land For The Urban Poor
Traditional government approaches have concentrated on
subsidizing the poor. The key problem with subsidies is that
with scarce resources, most governments have been unable
to subsidize all the poor who need housing.
Subsidies are not sustainable and often do not reach the
intended target group.
Subsidies in general, make the poor dependent on the
subsidizer, be it the government or a non-governmental
organization
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103
Increasing Effective Demand For
Land For The Urban Poor
Effective demand is defined as demand for a good or
service which can be paid for.
There are two basic elements to increasing the effective
demand of the poor: organization and access to finance.
2.3.2 Informal Land Market and Urban Poverty
104
Increasing Effective Demand For
Land For The Urban Poor
South Africa - The Housing Subsidy Scheme is the main
programme for delivering urban land to the urban poor. over
1.4 million subsidized plots/houses have been delivered since
1994. Subsidized housing delivery in the 1994-2003 period
averaged 158 000 units per year, which is less than the
estimated annual growth in the urban backlog (which was
estimated by the Department of Housing in 1997 as 178 000
households per year). The net result has been growing informal
settlements and growing numbers of inadequately housed
people, especially in metropolitan areas. For example, in Cape
Town the estimated number of shacks in informal settlements
increased from 24 000 in 1993 to 68 000 in 1998 to 83 000 in
2003.
2.3.2 Informal Land Market and Urban Poverty
105
Housing Rent Market for the Poor
It should be noted that the great majority of shelter is
provided by individuals today through private
ownership and subletting. Renting as a means of
getting access to affordable shelter is becoming more
and more common.
A large proportion of residents in cities and towns of
developed as well as developing countries are tenants.
Despite this, the number of governments actually trying
to support rental housing development is rather small.
2.3.2 Informal Land Market and Urban Poverty
106
Housing Rent Market for the Poor
The cities of developing countries have very different kinds of
housing and land systems. Where it is possible to obtain land
cheaply the poorest of the poor often build their own
accommodation. In other cities, they do not have this choice
and, if they are unable to share, they rent accommodation.
Consequently, in some cities, when differences in age, family
structure, etc. are discounted, tenants tend to be among the
poorest families. In other places, there is a more complicated
pattern; some informal settlement owners may be quite
affluent and others very poor, with tenants somewhere
between the two.
2.3.2 Informal Land Market and Urban Poverty
107
Community Organizations
• The poor as individuals are seldom able to afford land and
housing. Experience has shown that the poor as a group
are able to afford not only land but also housing. They are
also better able to negotiate with the government or the
private sector as a group rather than as individuals.
• Community-based organizations take several forms from
welfare associations, to slum-dwellers federations to
coalitions of poor. Communities often organize
themselves when they face a common threat or need,
such as the threat of eviction or the need for water supply.
• Non-governmental organizations have played a major role
in organizing the poor. They have assisted the poor in
building their capacities to work in group environments
and to negotiate with government or the private sector.
2.3.2 Informal Land Market and Urban Poverty
108
Missionvale Community Housing
Initiative South Africa (Case1)
The Missionvale Community Housing Initiative based in Port
Elizabeth, although essentially an innovative housing project
initiated by the Delta Foundation, approaches the provision of
housing to the poorest of the poor as a process which not
only provides for the physical needs of the beneficiary
Community but also its social needs. Set against the
background of a significant housing backlog which largely
resulted from the apartheid era in South Africa and the
existing Government's attempts to deliver adequate housing
within the context of the re-integration of South African Cities,
this project managed by a Community Based Organisation,
The Missionvale Housing Development Trust (M.H.D.T.), uses
the process of housing delivery as a vehicle for broader social
reconstruction and upliftment.
2.3.2 Informal Land Market and Urban Poverty
109
Slum Networking of Indore City,
India (Case2)
Slum networking is a community-based sanitation and
environmental improvement programme for the textile
manufacturing and industrial engineering centre of Indore, to
transform its 183 slums into settlements that integrate the poor
into the urban population as a whole. This city of 3,218 sq. km
has a total population of 1,400,000 (1995), 28 percent of whom
live in the slums. New government-built sewer, storm drainage,
and fresh water services follow the natural courses of Indore's
two small rivers near the heart of the city. All of the slums face a
riverbank. As an incentive, a state government ordinance gave
the slum dwellers long-term land leases, and the residents paid
for and built their own private toilets and washrooms. The rivers,
once filled with untreated sewage and solid waste, are now clean,
the streets paved, street lighting added, community halls built,
and the housing upgraded. The dwellings of the poor are not
slums any more.
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110
Slum Networking of Indore City,
India (Case2)
Aerial view
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
111
Slum Networking of Indore City,
India (Case2)
Plan showing slums,
proposed green
areas, and natural
drainage patterns
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
112
Slum Networking of Indore City,
India (Case2)
Aerial view,
garbage and raw
sewage once
filled the river
bed
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
113
Slum Networking of Indore City,
India (Case2)
Plan showing slum
locations in relation
to sewer lines
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
114
Slum Networking of Indore City,
India (Case2)
Street view, typical
road in a slum before
improvements
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
115
Slum Networking of Indore City,
India (Case2)
Site Plan
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
116
Slum Networking of Indore City,
India (Case2)
Street view, newly paved
streets have sewage lines
underneath
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
117
Slum Networking of Indore City,
India (Case2)
Landscaped
walkways along the
river
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
118
Slum Networking of Indore City,
India (Case2)
Street view, footpaths,
storm drainage, sewerage
hook-ups, and street
lighting
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
119
Slum Networking of Indore City,
India (Case2)
Street view
Slum Networking of Indore City, Indore, India
2.3.2 Informal Land Market and Urban Poverty
120
Increasing Savings and Providing
Access to Finance
It should be noted that the poor are not without
income. What they lack is capital. Formal lending
institutions, such as banks, often require collateral
which the poor cannot provide. The poor feel
intimidated or unable to deal with banking
procedures which require high levels of literacy.
Experience has shown that community-based
savings-and-credit schemes assist the poor in
increasing their incomes and capital.
2.3.2 Informal Land Market and Urban Poverty
121
Increasing Savings and Providing
Access to Finance
Community-based savings-and-credit schemes
preserve organized communities and increase
the status of women in the community in
addition to providing access to finance.
In many countries , savings-and-credit schemes
have formed federations or loose coalitions and
as such control sizable capital.
Governments can assist this process by creating
finance facilities which act as reserve banks for
these "mini banks of the poor".
2.3.2 Informal Land Market and Urban Poverty
122
Increasing Savings and Providing
Access to Finance
Philippines Community Savings and Credit
“One community dollar equals a thousand development
dollars"
It has been said that a single community dollar is equal to a
thousand development dollars, because that community
dollar represents the commitment of thousands of poor
people to their own development.
2.3.2 Informal Land Market and Urban Poverty
123
Increasing Savings and Providing
Access to Finance
Philippines Community Savings and Credit
Without the direct commitment of a
savings scheme, people can
participate in any kind of development
freebie that comes along. But when
development comes from people's
own savings, it's theirs, they own it.
Without this, development and
improvements have no meaning
Payatas community 1999
2.3.2 Informal Land Market and Urban Poverty
124
Community-based Women-oriented
Initiative to Fight Poverty, Kerala,india
Case:
The urban CDS system of Kerala offers the poor urban women
an open forum to express their anguish, anxieties, aspirations
and developmental needs. After identifying and prioritizing the
developmental needs, the poor women themselves formulates
micro plans to overcome their problems. Moreover the women
themselves implement various poverty reduction programmes.
For economic and social empowerment of poor women,
promotion of micro enterprises for the sustainable
development of poor families and educational and cultural
upliftment of target class etc. get priority in CDS structure,
formed under Kudumbashree Mission.
2.3.2 Informal Land Market and Urban Poverty
125
Bring the Poor Into The Formal
Land Market
Recommended Cases for Assignment
•
The Incremental development Scheme
- A Case Study Of Khuda-ki-basti In Hyderabad,
Pakistan
•
Upgrading Of Low Income Settlements --Senegal
2.3.2 Informal Land Market and Urban Poverty
126